The Nigerian Exchange Limited (NGX) says N540.48 billion worth of foreign transactions were recorded between January and June 2024.
In a report titled ‘Domestic & Foreign Portfolio Investment’ released on Wednesday, NGX stated that foreign transactions climbed from N145.08 billion reported in the first half (H1) of 2023.
Breaking down the international transactions, the stock market regulator stated that foreign investors liquidated more portfolio investments in the capital market than they purchased during the six months under consideration.
According to NGX, N311.41 billion in portfolio assets were liquidated in the first half of this year, compared to a foreign outflow of N73.06 billion reported in the same period in 2023.
However, foreign investment inflows totalled N229.07 billion in the first half of 2024, up from N72.02 billion in the same time the previous year.
The Nigerian bourse also reported a total transaction of N2.06 trillion from local investors in H1 2024.
This increased the total value of domestic and foreign transactions in H1 2024 to N2.60 trillion as of June 31.
According to the research, domestic investors accounted for 79.25 percent of 2024 H1 deals, compared to 90 percent the previous year.
NGX also reported that international transactions contributed for 20.75 percent of all transactions in H1 2024, up from 10 percent in H1 2023.
NGX said as of June 30, total transactions decreased marginally by 0.23 percent from N355.38 billion (about $239.56 million) in May to N354.55 billion (about $241.06 million) in June.
The report reads:
“The performance of the current month when compared to the performance in June 2023 (N406.75 billion) revealed that total transactions decreased by 12.83%.”
“In June 2024, the total value of transactions executed by domestic investors outperformed transactions executed by foreign investors by circa 54%.”
NGX also provided highlights of the performance of the market over the last decade.
NGX said:
“Over a seventeen (17) year period, domestic transactions decreased by 10.94% from N3.556 trillion in 2007 to N3.167 trillion in 2023; whilst foreign transactions also decreased by 33.28% from N616 billion to N411 billion over the same period.”
“Total domestic transactions accounted for about 89% of the total transactions carried out in 2023, whilst foreign transactions accounted for about 11% of the total transactions in the same period.”
On a month-to-month basis, the Nigerian exchange reported that domestic institutional investors (58%) beat retail investors (42%) by 16 percent.
The business stated that between May and June 2024, retail transactions climbed by 0.43 percent, from N113.53 billion to N114.02 billion.
NGX also reported that the institutional composition of the domestic market climbed by 34.68 percent, from N117.57 billion in May to N158.34 billion in June.